Digital Euro Vital for Payment Continuity During Outages
European Central Bank board member Piero Cipollone said a digital euro CBDC is crucial for ensuring payment continuity during major outages. He told the European Parliament that if banks’ apps fail due to cyberattacks, users could access accounts via the ECB’s digital euro app.
Cipollone noted that an offline functionality in the digital euro would serve as a backup during power outages when other payment methods go offline. With cash access limited in emergencies, a digital fallback complements physical currency.
The ECB has explored the digital euro for years to address stablecoins and competition from non-bank payment services such as Apple Pay, Google Pay and PayPal. The move aims to bolster cyber resilience while maintaining the central bank’s role in retail payments.
Neutral
The announcement of a digital euro highlights the ECB’s focus on payment continuity and cyber resilience rather than immediate shifts in crypto market dynamics. Central bank digital currencies generally face long development timelines and regulatory scrutiny, so there is limited short-term trading impact. Historically, similar CBDC explorations by other major banks have not triggered significant price movements in cryptocurrencies.
In the long term, a digital euro could influence stablecoin usage in the eurozone, as it may compete with private digital assets. However, the design and rollout timeline remain uncertain. Therefore, the overall effect on market sentiment is expected to be neutral, with traders unlikely to adjust positions solely based on this policy discussion.